RB Global Inc

Sound bite for Twitter is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably relatively expensive, but could be still in the reasonable zone. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth moderate. See my spreadsheet on RB Global Inc.

Is it a good company at a reasonable price? I notice that there are wide opinions on this stock. Some of my testing shows it could be on the expensive side, and other show it could be reasonable. This company has really done well for shareholders over the past 26 years and you can see that in the Total Return chart below. Revenues and earnings are growing faster than dividends and this could explain my testing results of expensive. P/E ratios are very high, but they have often been very high. This could also point to a relatively expensive price. I personally I would go with the stock price being on the expensive side.

I do not own this stock of RB Global Inc (TSX-RBA, NYSE-RBA). This was a stock suggestion I got and also it was a dividend growth stock found in the Canadian All Star List. See site.

When I was updating my spreadsheet, I noticed they did better in EPS because revenue went up, and revenue costs as a percentage of revenue, went down. I noticed that for employees, they either sold some shares or did not have any. The directors and Chairman that I follow all kept the shares they currently own.

If you had invested in this company in December 2014, for $1,030.26 you would have bought 33 shares at $31.22 per share. In December 2024, after 10 years you would have received $417.46 in dividends. The stock would be worth $4,281.42. Your total return would have been $4,698.88. This would be a total return of 17.35% per year with 15.31% from capital gain and 2.04% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$31.22	$1,030.26	33	10	$417.46	$4,281.42	$4,698.88

The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.29%. The 5, 10 and historical median dividend yields are low at 1.64%, 1.90% and 1.78%. The dividend growth is moderate (8% or higher per year) at 8.1% per year over the past 5 years. The last dividend increase was in 2024 and it was for 7.4%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is fine at 56% with 5 year coverage at 69%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 31% with 5 year coverage at 42%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 20% with 5 year coverage at 35%. The DPR for 2024 for Free Cash Flow (FCF) is good at 27% with 5 year coverage at 45%. There is no agreement on what the FCF is.

Item	Cur	5 Years
EPS	55.72%	69.24%
AEPS	32.09%	41.96%
CFPS	20.05%	35.01%
FCF	27.29%	44.52%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.16 and currently at 0.16. The Liquidity Ratio for 2024 is low at 1.29 and 1.31 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.61 and currently at 1.89. The Debt Ratio for 2024 is good at 1.94 and 1.95 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.26 and 1.17 and currently at 2.25 and 1.16.

Type	Year End	Ratio Curr
Lg Term	0.16	0.16
Intang/GW	0.43	0.43
Liquidity	1.29	1.31
Liq. + CF	1.61	1.89
Debt Ratio	1.94	1.95
Leverage	2.26	2.25
D/E Ratio	1.17	1.16

The Total Return per year is shown below for years of 5 to 26 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	10.30%	20.43%	18.42%	2.02%
2014	10	9.91%	17.35%	15.31%	2.04%
2009	15	9.78%	13.70%	12.00%	1.70%
2004	20	12.66%	13.85%	12.08%	1.77%
1999	25	12.77%	14.13%	12.60%	1.53%
1998	26		13.33%	11.96%	1.37%

The Total Return per year is shown below for years of 5 to 26 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	8.06%	18.06%	16.00%	2.06%
2014	10	7.57%	14.81%	12.87%	1.95%
2009	15	1.64%	11.41%	9.72%	1.69%
2004	20	11.66%	13.03%	11.08%	1.94%
1999	25	12.19%	14.47%	12.61%	1.86%
1998	26		13.93%	12.23%	1.70%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 28.91, 38.37 and 50.14. The corresponding 10 year ratios are 26.22, 35.75 and 46.80. The corresponding historical ratios are 24.16, 28.71 and 32.77. The current P/E Ratio is 44.91 based on a stock price of $144.59 and EPS estimate for 2025 of $3.22. The current ratio is between the median and high ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 17.65, 25.55 and 30.15. The corresponding 10 year ratios are 21.13, 27.62 and 33.63. The corresponding historical ratios are 21.85, 27.06 and 33.03. The current P/AEPS is 27.71 based on a stock price of $105.30 and AEPS estimate for 2025 of $3.80. The current ratio is between the median and high ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. (In CDN$, the ratio is between the low and median ratios which makes the testing also reasonable but below the median. However, one just above and the other just below the median.)

I get a Graham Price of $49.45. The 10-year low, median, and high median Price/Graham Price Ratios are 1.93, 2.44 and 2.86. The current P/GP Ratio is 2.13 based on a stock price of $105.30. This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get similar results in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 4.56. The current P/B Ratio is 3.68 based on a stock price of $105.30, Book Value of $5,284M, and Book Value per Share of $28.60. The current ratio is 19% below the 10 year median ratio. This testing is in US$. You will get similar results in CDN$.

I get a 10-year median Price/Cash Flow per Share Ratio of 19.24. The current ratio is 19.29 based on a stock price of $105.30, Cash Flow per Share estimate for 2025 of $4.05 and Cash Flow of $1,008M. The current ratio is 0.3% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median. This testing is in US$. You will get similar results in CDN$.

I get an historical median dividend yield of 1.78%. The current dividend yield is 1.10% based on a stock price of $105.30 and dividends of $1.16. The current dividend yield is 38% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$.

I get a 10 year median dividend yield of 1.90%. The current dividend yield is 1.10% based on a stock price of $105.30 and dividends of $1.16. The current dividend yield is 42% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$.

The 10-year median Price/Sales (Revenue) Ratio is 4.01. The current ratio is 4.36 based on Revenue estimate for 2025 of $4,465M, Revenue per Share of $24.17 and a stock price of $105.30. The current ratio is 9% above the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. You will get similar results in CDN$.

Results of stock price testing is that the stock price is probably relatively expensive, but could be still in the reasonable zone. The 10 year median dividend yield test says this. The P/S Ratio testing does not confirm this but says that the stock price is reasonable but above the median. All the other testing is saying that the stock price is reasonable and above or below the median. Note the financial statements and the estimates for this stock is given in US$.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (4), Hold (2) and Sell (1). The consensus would be a Buy. The 12 month stock price consensus is $156.15 ($113.50 US$) with a high of $171.98 ($125.00 US$) and low of $82.55 ($60.00 US$). The consensus stock price of $156.15 implies a total return of 9.10% with 8.00% from capital gains and 1.10% from dividends. There is quite a wide opinion about this stock and its price.

This stock is not well followed on Stock Chase. There are two entries for 2024 and both are Do Not Buy. One says it is overvalued and the other analyst says the CEO left in a huff over compensation. Amy Legate-Wolfe on Motley Fool thinks that Canadians should no longer ignore this stock. Adam Othman on Motley Fool says that this Canadian Industrial is a stock to buy. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their first quarter of 2025.

Simply Wall Street via Yahoo Finance reviews this stock but thinks there are better dividend investments available. Simply Wall Street has one warning of significant insider selling over the past 3 months.

RB Global operates the world's largest auction for heavy equipment. The company started as a live auctioneer of industrial equipment; since then, it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment. RB Global operates over 40 live auction sites in more than 12 countries, along with online marketplaces, including IronPlanet, Marketplace-E, and GovPlanet. Its web site is here RB Global Inc.

The last stock I wrote about was about was Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF) ... learn more. The next stock I will write about will be IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more on Wednesday, June 4, 2025 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks June 2025.... learn more on Tuesday, June 3, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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